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Costs Involved In Owning A Car In The UK

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By Edited Oct 25, 2016 0 0

Owning a car is a lot more expensive and time-consuming than you might think. A lot of young people nag their parents to get them a car but they don't have any idea of what's really involved.

Cost Of Buying A Car - The costs involved in owning a car go a lot further than the purchase price. If you aren't able to buy the car cash then you'll will have to take out some sort of financing deal. This can either be with the dealership or with another source such as a bank loan.

The amount you pay will vary depending on a number of criteria such as the car you are buying, how much the car costs and also what your credit rating is. If you are young and haven't built up a credit rating then you will find it more tricky to get a good deal.

If you have got bad or no credit then you will probably have to pay more in terms of interest repayments. Of course, if you can get a co-signer with good credit (eg a parent) then this is a good way of getting a more affordable loan.

Car Insurance - Young drivers really suffer a great deal when it comes to getting insurance. First of all, you simply don't have much experience or track-record. Secondly, young people have a much greater chance of having an accident partly because they are inexperienced and partly because they take more risks.

Some young people in the UK get their mum or dad to take out the insurance and then the young person gets added as an additional driver. This is certainly one way of getting around it but it isn't legal. If the young person genuinely is only using the car now and again then that's fine. However if they are using the car the most but they are an additional driver for insurance purposes then this is very bad.

Insurance companies will send an investigator round to see what items are in the car. If, for example, they see that all the CDs are by gangsta rap artists, it's highly unlikely that a 50 year old woman would be listening to this kind of music. Therefore the car is probably normally driven by the young person and this is fraud.

Before buying a car you should have a look to see how much it will cost to insure. The cheapest car for young drivers to insure include Vauxhall Corsa, Fiat Panda and Renault Clio.

Road Tax - In the UK, it's illegal for anyone to drive a car on the public roads without car tax. Unless, of course, you have a car over 25 years old. The price you pay for your road tax will also depend on the car you have. The UK government wants to encourage people to drive smaller more fuel-efficient cars which means you could pay between £0 per year and £435 per year. The cost of the road tax might even influence the car you buy.

Car Maintenance - Most young people cannot afford an expensive quality car. Therefore they buy a car which is a good few years old and is pretty cheap. Unfortunately, older cars tend to need a lot more money spent on them in terms of having brakes and exhaust pipes replaced.

Even if you do buy a quality car, there's still the cost of having it serviced, paying for the MOT fee and what not. This can work out as a couple of hundred a year depending on what sort of car you have.

This article should now give you a little insight into the real costs of owning a car. It's not as straight forward as you might have initially thought. Of course, there are even more expenses that you might not have thought about such as breakdown assistance, car audio and car audio insurance.

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